KCC: Second Quarter 2024 Business Update
Oslo, 11 July 2024: Klaveness Combination Carriers’ ("KCC" or the "Company") preliminary CABU and CLEANBU TCE earnings for second quarter 2024 ended at $/day 37,656 and $/day 39,093 respectively. Fleet average TCE earnings for the quarter ended at $/day 38,376, approximately $/day 2,100 lower than in Q1 2024, but at the high end of the guiding range ($/day 36,700-38,700).
The CABU fleet struck another TCE earnings record in Q2 2024 driven by a very strong MR tanker market positively impacting the index-linked contracts and continued efficient trading with 13% ballast and 98% combination trading. CABU TCE earnings for Q2 were up approximately $/day 2,800 from Q1 2024 and were approximately $/day 700 above the high end of the guiding range.
CLEANBU TCE earnings were mainly driven by a continued strong LR1 product tanker market, although LR1 spot market earnings fell back relative to the buoyant levels seen in Q1 2024 and have remained very volatile throughout the quarter. To optimize earnings, the CLEANBU fleet continued to be employed mainly in tanker trades in Q2 (79%) although the combination trading still accounted for 63% of the CLEANBU capacity in the quarter. CLEANBU TCE earnings for Q2 were in line with the mid-point of the guiding range and approximately $/day 7,500 lower than the record strong Q1 2024 TCE earnings.
Actual number of on-hire days were in line with the expected number of days in the guiding for second quarter, but with 12 less CABU days and 10 more CLEANBU days.
KCC has decided to postpone the planned energy efficiency retrofit projects for two vessels from second half 2024 until 2025. One CLEANBU vessel completed the retrofit of an air lubrication system and a shaft generator during the 5-year docking in May 2024. Similar retrofits will be made on one CABU vessel in Q4 2024 and on further one CABU and two CLEANBU vessels in 2025. Three vessels will dry dock and one vessel will be off hire in connection with intermediary class survey during second half of 2024. However, due to the postponed retrofits, total scheduled off hire is expected to be 161 days for second half 2024, down from 225 days reported in the Q1 Presentation. Further details for each vessel will be available in the Q2 Presentation.
KCC’s Second Quarter Report 2024 will be published on 23 August 2024.
| TCE earnings ($/on-hire days) | Q2 2024 Preliminary | Q2 2024 Guiding* | Q1 2024 Actual |
|---|---|---|---|
| CABU | 37,656 (680) | 36,000 - 37,000 (692) | 34,824 (680) |
| CLEANBU | 39,093 (683) | 37,500 - 40,500 (673) | 46,593 (637) |
| Fleet | 38,376 (1,363) | 36,700 - 38,700 (1,365) | 40,514 (1,317) |
*Estimate based on booked cargoes and expected employment for open capacity basis forward freight pricing (FFA)
TCE earnings $/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet “APM2Q2024” published on the Company’s homepage Investor Relations/Reports and Presentations under the section for the Q2 2024 Report. The address to the Company’s homepage is www.combinationcarriers.com.
For further queries, please contact:
Engebret Dahm, CEO, Telephone +47 957 46 851
Liv Dyrnes, CFO, Telephone +47 976 60 561
About Klaveness Combination Carriers ASA:
KCC is the world leader in combination carriers, owning and operating eight CABU and eight CLEANBU combination carriers with three CABU vessels under construction for delivery in 2026. KCC’s combination carriers are built for transportation of both wet and dry bulk cargoes, being operated in trades where the vessels efficiently combine dry and wet cargoes with minimum ballast. Through their high utilization and efficiency, the vessels emit up to 40% less CO2 per transported ton compared to standard tanker and dry bulk vessels in current and targeted combination trading patterns.
